Suppose that in January of 2022, the Trump-era tax cuts expi…

Suppose that in January of 2022, the Trump-era tax cuts expire. As a result, $50 billion is removed from the paychecks of working Americans. If the Marginal Propensity to Consume is 0.90, what total impact will this increase in personal income tax rates have on Aggregate Demand (AD)?

Suppose that current macroeconomic conditions make an increa…

Suppose that current macroeconomic conditions make an increase in personal income tax rates appropriate, but Congress does not implement this measure. After all, the next election is right around the corner, and raising tax rates may harm re-election chances for members of Congress. This is an example of which problem associated with Fiscal Policy?